Vonage owes $120 Million to Verizon, Appeal Denied
Source: snapvoip.blogspot.com
Bloomberg reports that Vonage lost the appeal against courts decision against it regarding the Patent case by Verizon. Well I hope Vonage does not end up like a burned rocket.
Nov. 15 (Bloomberg) — Vonage Holdings Corp., the unprofitable Internet phone service provider, must pay $120 million to end a patent lawsuit won by Verizon Communications Inc. after a U.S. appeals court refused to reconsider the case.
Vonage settled the infringement suit on Oct. 25 after Verizon won both a jury verdict and an appeal in the case. The accord left open the amount to be paid until the appeals court decided whether to grant Vonage’s request for reconsideration.
Legal costs have eaten into Vonage’s cash flow and may increase its risk of bankruptcy. The Holmdel, New Jersey-based company said yesterday that it may not have enough money to pay $253.5 million in debt due as early as December 2008. Vonage, which generated cash of $22.5 million in the third quarter, will try to restructure the debt.
